Business as Usual
The main question discussed in the chapter can be formulated in the following way: what do corporations mean while proclaiming the idea of corporate social responsibility? Bakan pays attention to the fact that the concept of social responsibility in relation to the activity of corporations is one of the most discussed issues today. Thus, corporations accentuate their responsibility to address the community’s needs and develop their activities to satisfy these needs and to respond to any society’s problems. From this point, social responsibility can be observed with references to the corporations’ sponsoring different social events and promoting the environmental initiatives, and the activities of Pfizer and BP corporations can become the examples of following the principle of social responsibility.
Nevertheless, the corporations’ activities in relation to social needs do not always respond to the laws and regulations used regarding these companies. Thus, the next important question can be formulated the following way: do big corporations become outlaws while following the idea of social responsibility? According to Friedman, companies are responsible only to respond to the interests of the shareholders, and their social responsibility is to increase profits. From this point, all the activities promoted as examples of social responsibility can be discussed as realizing for the company’s image and profits’ increase without violating the law.
What should people expect from corporations’ focus on social responsibility? Bakan states that it is impossible to expect much from social responsibility proclaimed by many companies, and he compares the idea of social responsibility with call boxes, which can promise some help, reassure people, and even work sometimes. However, the main goal is to create a positive and attractive image of the corporation and gain the customers’ loyalty.
The Externalizing Machine
Stating that a lot of corporations develop as the externalizing machine, Bakan focuses on the idea of externalities. How can externalities be defined in relation to the corporation’s activities? Thus, externalities can be defined as the effects of the corporation’s activities on the third party, which can be people or the environment. Externalities can be positive and negative, and the impact of negative externalities is often more obvious for people when the company does not realize any attempts to reduce these negative effects. It is possible to discuss all such negative impacts as environmental pollution or inappropriate conditions of work and definite threats for the employees as externalities.
What features and qualities help compare corporations with psychopathic personalities? Corporations plan their activities according to the cost-benefit analysis in order to gain as many profits as possible. To achieve the best results, it is necessary to treat people not as beings but as resources. The exploitation of human resources to gain more benefits is the main feature, which is similar for both psychopathic personalities and corporations.
What is the price people pay for the development of corporations and their higher profits? Much harm to people, frequent disasters, the violation of the workers’ rights, and the negative effects on the environment are the common price for the prosperity of corporations. The regulatory system to control the situation and reduce the corporations’ power is often ineffective because of the lack of the necessary enforcement and strict laws. That is why the cases of the companies’ disregard for employees are still numerous.
Works Cited
Bakan, Joel. The Corporation: The Pathological Pursuit of Profit and Power. Free Press, 2005.